6 th Zimbabwe Mining and Infrastructure Indaba 8-10 October 2014 Harare, Zimbabwe

Xxxxx-xx/Footer 1 1. Introduction2. The Integrated Resource Plan3. The determinations4. Eskom Africa Strategy5. Opportunities for Zimbabwe Table of contents

Xxxxx-xx/Footer 2 Introduction Minister of Energy’s Power’s The Integrated Resource Plan Implementation of the IRP

Xxxxx-xx/Footer 3 Total responsibility for the energy industry Policy development Plan for new capacity Decide who to build new capacity Procure new capacity The Powers of the Minister of Energy

Xxxxx-xx/Footer 4 Ensure energy security of supply through: Introducing Independent Power Producers Cleaner technologies Least cost technologies Support regional integration and development Key policy considerations

Xxxxx-xx/Footer 5 IRP Revised Balance Scenario

Xxxxx-xx/Footer 6 Integrated Resource Plan Implementaton New build options Coal (PF, FBC, imports, own build) NuclearImport hydroGas – CCGTPeak – OCGTWindCSPSolar PV MW Total First Determination Second Determination 1. Built, owned & operated by IPPs 2. Commitment necessary due to required high-voltage infrastructure, which has long lead time 3. Commitment necessary due to required gas infrastructure, which has long lead time 4. Possibly required grid upgrade has long lead time and thus makes commitment to power capacity necessary

Xxxxx-xx/Footer 7 First Determination 1st Determination – 3724 MW of renewable energy of which over 2400 has be procured The department and Eskom signed contracts with 47 preferred bidders Some projects under window 1 are already supplying power into the grid whilst majority are due for connection in 2014 Most window 2 project are under construction and are due for connection into the grid in MW to be procured

Xxxxx-xx/Footer 8 Second Determination Determination – 3200 MW of renewable energy Added to the current Renewable Procurement Programme Determination – Base load/ mid-merit MW of coal based load/ import hydro MW of gas fired plant mead married Separate procurement documents being developed 19 December 2012 Determinations Determination – Medium Term Risk Mitigation MW from cogeneration MW from gas of coal base load Separate procurement documents developed

Xxxxx-xx/Footer 9 Eskom’s Africa Strategy To increase imports through supporting the RSA Department of Energy Support the development of strategic transmission corridor and generation projects To be involved in Operations and Maintenance (O&M) In future to export surplus power

Xxxxx-xx/Footer 10 Zambia Botswana Mozambique RSA Namibia Opportunity for Zimbabwe To develop interconnectors with: To participate in future Procurement Programmes

Xxxxx-xx/Footer 11 Thank You